Reforms in the Secondary Market in India

Reforms in the Secondary Market in India

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1. Establishment of the NSE or, the National Stock Exchange - NSE was set up in November 1992 and began its tasks in 1994; which has now formed into a modern, electronic Market, which positioned fourth on the planet by Value Exchanging volume.

2. OTCEI or, the Over-the-Counter Exchange of India - was established in 1992. It was promoted by a group of prominent Indian financial institutions, such as UTI, ICICI, IDBI, IFCI, and LIC, among others. It is an electronic public Stock trade posting a totally new arrangement of organizations which won't be recorded on other Stock trades.

3. DIP or, the Disclosures and Investors Protection Rules for New Issues - NSE was set up in November 1992 and began its tasks in 1994; which has now formed into a modern, electronic Market, which positioned fourth on the planet by Value Exchanging volume.

4. Depository system - Since 1996, the Indian stock market has undergone a significant transformation thanks to the implementation of the depository system and the scrip-less trading mechanism. The Trading system was based on the physical transfer of securities before this. An organization known as a depository holds shareholder securities in electronic form, transfers securities among account holders, makes ownership transfers possible without handling securities, and makes it simple to store securities.

5. The NSCL, or National Securities Clearing Corporation Ltd - was established in 1996. Since July 1996, it has guaranteed all NSE trades. The NSCL is answerable for post-exchange exercises of the NSE. Getting and settlement free from exchanges and Chance administration are its focal capabilities.

6. Trading with Central Government Securities - to energize more extensive cooperation of all segments of investors, that include retail investors all over the nation. Trading with government securities has been presented from January 2003. This is done through a cross country, unknown, order driver, trading framework of the stock exchanges that is screen-based exactly as equity trading.

7. Mutual Funds - One of the most significant developments in the Indian capital market is the emergence of diversified mutual funds. Their main job is to get people's savings together and put it into Stock Market Securities. Households can participate in the Securities Market in a significant way through mutual funds.